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Intel CFO Stacy Smith on the company’s growth in areas such as its server business and its acquisition of McAfee and Infineon.
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Or much of today's trading session Intel had been the only Dow component in the red a day after delivering better than expected.
Second quarter earnings and an upbeat outlook for the third quarter made this company is probably saying.
What more do we have to do have record at record earnings over and over again investors little jittery -- After Intel cut its forecast slightly on personal computer sales for the rest of the air.
So -- something else may be a growing cloud business cast some light on the future.
Joining us now live from Santa Clara -- California Stacy Smith senior vice president and chief financial officer of Intel hi Stacey good to see you.
-- -- -- decisions people are obsessed with one portion of your business and that's the PC sales business because that used to be your bread and butter but you've worked very hard to expand this.
What are you -- about these analysts who refused to really sort of broaden their view we even though you've got a lot of buy ratings on this.
To say that it's not just a PC chip sales company anymore.
Yeah I I mean actually.
I'll focus on that segment of the business to start -- we had a great quarter in the PC segment of our business that was up double digits from a year ago on a revenue basis.
Really every segment of our business was up BO double digits and that contributed to our first thirteen billion dollar -- so.
That I think we're we're firing on all cylinders were growing the PC segment of the business.
We're starting to see great growth in our server business is the spilled out of the cloud is happening.
We're seeing good progress in terms of design wins in some and devices so.
It it were were set up for a pretty exciting second half.
But I know you guys are smart and you look ten miles down the road not ten feet down the road in UC.
Families having 123 tablets now what kind of R&D what kind of capex -- he pouring into developing chips.
That would be super star chips for the tablet world.
Yeah I mean it is if you wish if you step back what you see right now is that -- -- proliferation of devices.
That are computing in connecting to the Internet you know you have your notebook computer.
People have Smartphones -- -- gathering data and in downloading information they have tablets.
There's this Internet of things where you have you know security systems and you know smart -- engines smart cash registers are all computing and connect Internet it it's expanding the market that we serve.
Morgan we have designs across a lot of those kinds of form factors we're gonna continue to win designs and and for the four factors that drive their client business.
But what we're seeing today and what's been driving our business -- -- nine months is that all of these devices that are connecting to the server infrastructure.
We're seeing great growth and our server business and so we participate on both sides of this compute continuum.
We're putting in investments and capacity to to service that market growth and and let me.
Get looming over the server business because I wanna explain to work viewers that servers are very much the part that becomes the cloud computing story that you are this is where.
Up people couldn't do everything they wanted the so called cloud meaning not tied to a specific PC.
That business of -- the server business up 50% since I guess the first what six months of the year of 2011.
How -- you further capitalize on that do you look at that unbelievable growth me now there's an ETF that is focused on cloud computing itself.
You look at that they wait a minute let's shift some of our focus took that away from something else that isn't as -- -- revenue driver.
-- I don't think it's a question of focus saying -- have taking resources office something to focus more on that we've we've been in the server market prolonged time.
We're seeing great growth.
You know that's growth on top of what's happening in the notebook segment of the business -- growth on top of what's happening in our embedded business its growth on top of you know what we're doing in tablets and phones and so you know it's it it's one of those -- situations where.
Every segment of our business grew double digits in the second quarter.
When we get to -- your acquisition of McAfee which was -- the security of business and infineon wireless solutions two quick questions -- we're running out of time infineon does it have any new designs that you're ready to unveil.
No will will talk about designs in conjunction with our customers you know at the right time so that's not something that I'm gonna do today.
But infineon is bringing in some really important capabilities to us in terms of the ability -- Integrate wireless capabilities -- -- our products they've got a great customer list a very good position in the market.
And the had a very good second quarters so were were were real pleased with that in the in the first quarter of our ownership that it really well.
And very quickly McAfee will you announce a specific securities product with the McAfee acquisition.
Yeah what we want products in the market in the second half of this year.
In our in our silicon business creates some hooks for McAfee software to connect to.
And a combination of that hardware solution to security along with the software.
Of the -- offer them actually brings an equation.
Will allow us to you know solve security and identity management.
Problems and a more fundamental fashion.
Giving people you know even more assurance in terms of their computing experience.
So you see those in the second half and then -- -- -- from there are so you know it's going to be pretty quickly you start to see.
Great products in the market place this building on both capabilities.
We'll watch for -- Stacy Smith the senior vice president and chief financial officer of Intel.
Thank you very much we appreciate you joining us.
